How to Take Federal Income Tax Deductions
If you itemize your deductions, you can take medical expenses, gifts to charity and business expenses off your federal income tax. You can even take gambling losses as deductions in most cases, as well as losses due to theft or damage. However, itemizing your deductions does take more time than claiming a standard deduction.
- Difficulty:
- Easy
Instructions
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1
Decide between taking a standard deduction and itemizing your deductions. You should only itemize your deductions if the total will be higher than a standard deduction.
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2
Download Form 1040, Schedule A and instructions from the IRS website if you are itemizing your deductions (see Resources below).
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3
Read the instruction booklet carefully, and take note of the deductions for which you qualify. The booklet includes detailed descriptions of how to qualify for each deduction and the amounts you can deduct.
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4
Fill out your Schedule A form, and calculate your total deduction. You should know the amounts of the expenses you are deducting. You may need to consult the instruction booklet for further details.
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5
Go onto the IRS website if you have any questions about filling out your Form 1040, Schedule A. You can also contact your local IRS office for more information or help.
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1
Tips & Warnings
In some cases, you can use online tax preparation software to complete your Form 1040, Schedule A.
Your total deductions may be limited if your income exceeds approximately $75,000 or $150,000 for a joint return. Limits are included in the instructions for Form 1040, Schedule A.
Itemizing deductions on your federal income tax return does not affect your state income tax. Each state has different tax laws. Check the laws regarding deductions in your state.
Some online tax preparers will automatically use the standard deduction, failing to offer you the option to itemize your deductions. Ask how your preparer handles deductions.
